Profile of Larry Tabb

Founder & CEO, TABB Group Blog Posts: 158

Larry Tabb is the founder and CEO of TABB Group, the financial markets' research and strategic advisory firm focused exclusively on capital markets. Founded in 2003 and based on the interview-based research methodology of "first-person knowledge" he developed, TABB Group analyzes and quantifies the investing value chain from the fiduciary, investment manager, broker, exchange and custodian, helping senior business leaders gain a truer understanding of financial markets issues. Larry has published industry research analyzing ECNs; fixed income, equity and foreign exchange trading systems; back-office trade processing systems; broker workstations; analytical trading tools; infrastructure development tools; and foreign and emerging market technologies. He has written extensively on the changing market structure, exchanges and regulatory issues and business continuity as well as new technology trends in cost management, risk management, order management, best execution, algorithmic trading, dark pools, multi- and cross-asset trading, liquidity management, FIX, STP, connectivity, custody and advances in emerging technologies.

Is Financial Services Innovation Dead?

6/12/2013
Fear, regulation and tight budgets have reduced investment in IT innovation to unimaginable lows. Will technology innovation return to Wall Street?

Flash Crashes, Kill Switches, and 10 Million Easy Buttons

10/25/2012
If firms don't start to do a better job of testing software and systems, regulators may do that job for us. And then things will get really complicated.

The End Of High Frequency Trading As We Know It?

10/1/2012
If these rules are enacted, no one is sure that we will experience the perfect market that regulators are hoping for.

Tabb Senate Testimony: First, Do No Harm

9/20/2012
In his testimony before the US Senate on Thursday, the Advanced Trading and Wall Street & Technology columnist Larry Tabb answers the question: What, if any, policy changes should be considered by regulators or Congress in order to better protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation?

Tabb Testimony: The Regulators Need Better Tools

9/20/2012
In his testimony before the US Senate today, the Advanced Trading and Wall Street & Technology columnist Larry Tabb answers the question: Do regulators have adequate tools to identify and limit manipulative or abusive strategies?

Tabb Senate Testimony: Beware Over-Regulation

9/20/2012
In his testimony before the US Senate today, Advanced Trading and Wall Street & Technology columnist Larry Tabb recommends changes to strengthen the markets without killing future profits.

Would Going Back to Simpler Times Re-Inflate the Equities Market?

8/14/2012
Many market participants are saying we need to go back to simpler times, when spreads were wider, trading was slower, markets were simpler, research was more prevalent, and capital was more pervasive. But would that really fix the equity markets?

Fragmentation Is Redlining the Markets

8/6/2012
Fragmentation is wrecking one of the greatest financial markets of all time, according to Tabb Group’s Larry Tabb. In the wake of the Knight Capital fiasco, he says, the SEC should think hard about the market structure it has created, and do its utmost to rein it in.

Clearing as a Catalyst: FX Forwards, NDFs and FX Swaps Join the Modern Age

5/21/2012
The more-robust capturing, reporting and clearing of FX forwards, NDFs and swaps should be counted as one of the more positive aspects created by the Dodd-Frank process, says Tabb Group CEO Larry Tabb.

How the JOBS Act Will Impact Hedge Funds

4/30/2012
The recently passed Jumpstart Our Business Startups Act is about more than jobs. The new regulation is likely to drive consolidation among asset managers, and small hedge funds are in danger of being forced out of the game.

5 Reasons Why One In Every Three U.S. Equities Shares Is Traded In the Dark

4/25/2012
Tabb Group offers the real reasons why 33 percent of U.S. equities volume is traded off-exchange.

Fixing the Futures Market in the Wake of MF Global

1/12/2012
To restore investor faith in the futures market, the CFTC may need to do more than just update the rules that govern the investing of customer cash, says Larry Tabb, founder of Tabb Group.

Is a Shorter Trading Day the Cure for What Ails the Markets?

1/5/2012
Volume at the close is way up, and retail investors are nowhere to be seen. Sometimes a sick market needs strong medicine. In this case, it could be a one-hour trading day, says Tabb Group founder Larry Tabb.

Big Data May Be the Final Frontier on Wall Street

11/29/2011
Data is becoming all-encompasing on the Street -- for both compliance and trading, says Larry Tabb.

MiFID II Likely to Backfire and Hurt Investors, Markets

11/15/2011
While we in the United States believe Dodd-Frank and new SEC regulations are challenging, the European sentiment on the MiFID Review makes the U.S. regulatory proposals look downright friendly.

Larry Tabb’s 2012 Financial Markets Forecast: Antacid — And Plenty of It

10/26/2011
The markets are in a state of shock. And all of the new rules coming in 2012 will only make it more difficult and more expensive for all financial markets participants.

The Quant Mystique

10/24/2011
Why is the mystique of software code more important than the surety of security?

Building a Better Liquidity Strategy

10/17/2011
Brokers are employing three major strategies to improve low-latency execution quality.

Alpha Bets: Alpha or Beta, Which Are You?

10/4/2011
The investing world is bifurcating into two camps: those generating alpha and seeking uncorrelated returns, and those focusing on beta and capturing index- based returns. Which camp you are in makes all the difference in the world.

Exchanges Must Choose Between Domination or Irrelevance

9/27/2011
Exchanges face a stark choice: world domination or isolation. Meanwhile, local regulators must decide whether to allow their markets to play in a risky world.

Retail Investing: An Increasingly Nuanced Take

9/2/2011
As retail investors grow increasingly sophisticated, the trading tools for professionals and individuals will align.

A Decade of Destruction and Rebirth

8/22/2011
The past decade has been tough, but we need to be optimistic and view it for the success it has brought and the opportunity it will bring.

Equity Volumes: Staring Into the Abyss

8/18/2011
There is only so much cost that can be taken out of the equation without some firms throwing in the towel.

Exchanges Face a Stark Choice: World Domination or Isolation

8/2/2011
What a difference a few months make. Are exchanges headed for world domination, or will governments stop their local exchanges from becoming the trinkets of a global exchange aggregation scheme?

The Brave New World Of Banking Technology

7/25/2011
Increasing regulation will dampen profits, drive cost cutting and push banks into shared IT environments.

Will You Still Need Me, Will You Still Feed Me?

7/6/2011
The rule has an implementation period that potentially could stretch to 11 years, starting with a two-year rule-writing allowance, followed by a two-year implementation period, three one-year extensions, and finally a four-year gradual extended transition for illiquid securities funds and/or products.

Cloud Computing: Just When You Thought It Was Safe

6/27/2011
While the business case for cloud computing is compelling, availability is a concern, and Wall Street firms are likely to keep to private clouds for transactional infrastructure, writes Larry Tabb.

The Worst Market Structure ... Except All Others

5/25/2011
To paraphrase (poorly) Winston Churchill, our equity markets are the worst form of market structure "except all the others that have been tried.

High-Frequency Trading and the Blind Scales of Justice

5/17/2011
The Justice Department and SEC's joint investigation into high-frequency trading could be just what the industry needs, writes special contributing editor Larry Tabb.

Restarting the Engines of Growth

4/15/2011
The process of becoming a public company is broken. The SEC needs to reform the rules to revive the stalled IPO market and spur growth.

Flash Crashes, Sacred Cows and Doing the Right Thing

4/5/2011
Industry pressures to forgo preferencing restrictions and trade-at rules will be intense, even if the new rules are the right prescription for staving off another flash crash.

Derivatives: OTC or Exchange-Traded -- Good, Bad or Indifferent?

3/31/2011
By moving OTC derivatives to exchanges or SEFs, regulators are making it easier to trade these exotic instruments.

Algo Testing Mandate a Solid, But Impractical Idea

3/9/2011
CFTC commissioner Bart Chilton recently proposed a bold idea: Exchanges and regulators should test trading algorithms before they go to market and perhaps award them a "Good Housekeeping Seal of Approval" before launch.

iPad A New Technology Paradigm -- A Reluctant Admission

2/10/2011
The internet -- along with client-server and wireless computing -- are driving the next new technology paradigm: The Age of the iPad.

Trends and the Tornado: Predictions for 2011

1/18/2011
A battle of epic proportions over OTC derivatives reform will suck all of the air out of equities.

Companies that Ignore Cloud Computing Could Be Left for Dead

11/23/2010
Companies that don't take advantage of the agility offered by the cloud could be left for dead.

Balancing Trading and Issuer Protection in a Fragmented Market

10/26/2010

Office of Financial Research: Essential? Folly? Or Both?

9/30/2010
The Dodd-Frank Wall Street reform Act created the Office of Financial Research to help the U.S. Treasury assess banks' risk. But achieving that goal may require an act of God.

Rethinking Our Markets

9/20/2010
How do we create a market that doesn't fold under duress?

The Demise of the Corporate Data Center

8/17/2010
To secure their infrastructure and processes, Wall Street firms have built up castle walls around their data for years. But electronic trading is creating cracks in those walls.

Speed and Market Efficiency: Competition Over Mandate?

6/28/2010
When the speed of the price provider and the price taker are not in parity, the market becomes inefficient and seemingly unfair. We can mandate slower markets, a wider quote or faster technologies, or hold market professionals accountable and let competition run its course.

Getting Institutional Customer Intimacy Right

6/10/2010
The ability to deliver a robust broker-to-institutional client delivery channel has just not developed, says TABB Group’s Larry Tabb.

Tabb: HFT, Fat Fingers and Market Insanity

5/7/2010
May 6, 2010 saw a complete meltdown of liquidity in a five-minute period of time and whether it was caused by high frequency trading or the lack thereof or it was an algos-gone-wild moment or was caused by a trader fat-fingering an order, we need to get to the bottom of this - and fast.

Financial Reform: A Colossal Failure of Leadership

4/27/2010
The leaders of the financial industry are largely to blame for accelerating the financial crisis and bringing on the regulatory changes that it now faces.

In Praise of Shorts and Financial Speculation

3/10/2010
While the stocks of many investment banks tanked and a number failed, it wasn't the short sellers that created the problems.

The Problematic Nature of New Short Selling Restrictions

3/1/2010
The SEC's new rules limiting short selling do not satisfy either proponents or antagonists of short sale restrictions.

Executive Compensation Limits Could Have Far-Reaching Consequences

1/12/2010
The pay czar, the banker tax, pending legislation, shareholder lawsuits and a popular revolt all are vying to change Wall Street compensation.

Aligning Washington and Wall Street

12/15/2009
Wall Street and Washington are misaligned. If we want this country to continue to grow, this needs to be changed now.

Prognosticating About 2010 and the Magic 8-Ball

11/17/2009
Regulatory changes, electronic trading solutions and international policy will dominate 2010. How so? 'Reply hazy, try again.'

Regulators, Be Careful What You Wish For

11/6/2009
While some change may be necessary, regulators must remember that even the smallest shifts in policy can have wide-ranging and unpredictable effects on the markets.

'Exchange-Traded' Does Not Equal 'Risk-Free'

10/26/2009
Just because Congress mandates that OTC products trade on-exchange doesn't mean that OTC derivatives won't blow up.

Wall Street Compensation and Investment: A Different Take

10/21/2009
The likelihood of deferred compensation may trouble Wall Street professionals. But on the bright side, it should fuel a deferred compensation-based investment boom.

Transparency: The Rx for What Ails Market Structure

9/2/2009
If we don't do something to shine a light on market practices, such as high-frequency trading and flash orders, and prove their value, many may just get regulated out of existence.

A New Theory on Market Structure

7/16/2009
What happens when economic market theory collides with the fractured, high-speed, low-latency, dark pool insanity that we call the U.S. equity market?

New Financial Regulatory Reform Proposal: 'It's in There'

6/22/2009
The Obama administration's new regulatory reform proposal -- which covers everything financial -- is divided into five major categories: firm supervision and regulation, financial market supervision, consumer protection, governmental crisis management tools, and increased global regulatory cooperation.

The Odds of Exchange Migration

6/2/2009
Though it may seem like a quick fix, migrating OTC products to exchanges is a process fraught with dangers and problems all its own.

OTC, Central Clearing or Exchange-Traded: Choosing the Right Path

5/8/2009
Increasing capital reserve requirements for OTC self-cleared products would change the economics of the marketplace and may nudge the indusrty toward an exchange-traded model.

The Downside of an Uptick Rule

4/16/2009
An uptick rule would slow trading and remove liquidity from dark pools -- but it won't curb short selling.

Divining the Future of Professional Media in a Web 2.0 World

3/18/2009
What does the disintermediation of professional media mean for an industry focused on high-speed, accurate and intelligent information?

Rethinking Market Regulation

2/25/2009
Over the years, regulators and legislators have tinkered with the markets, making it virtually impossible to raise capital, says Larry Tabb.

We Need Industry Leadership Now

1/22/2009
As legislators take aim at Wall Street, the industry must seize the opportunity to work with regulators to create guidelines that will benefit everyone, says Special Contributing Editor Larry Tabb.

Four Ways President Obama Can Put the Economy Back on Track

1/21/2009
The Obama Administration walked into one of the most turbulent financial markets since the Great Depression. What can President Obama do to not only stop the slide, but also turn the economy around?

The Madoff Affair

12/12/2008

Banking Bailout: Is Bigger Truly Better?

12/5/2008
Should we provide a safety net for firms that jeopardize the global financial system through their stupidity?

Developing a New Prime Brokerage Model

11/12/2008
As hedge funds move away from prime brokers and toward using traditional custodians, the prime brokerage model is becoming endangered.

Why are we still waiting for the $700 billion bailout?

9/26/2008
As debate over the $700 billion bailout continues, Larry Tabb, CEO of TABB Group, comments on the need for "bipartisan, unambiguous and morally steadfast leadership ... not a group of folks fiddling around while Rome burns"

Lehman, Merrill, and Bear — Oh My

9/15/2008
Assessing the fallout as well as the future of the banking industry can help us return to a healthier place.

A Tale of Two Exchanges: BATS Gets Status, CME/NYMEX Agree to Merger Terms

8/19/2008

Now Is the Time for Firms to Position Themselves for the End of the Economic Downturn

8/13/2008
Downturns happen -- the industry will survive. But firms need to adjust to changing market dynamics.

Light Needs to be Shed on Variations of Dark Pools

7/21/2008
From ownership structures to price formulation to liquidity access, all dark pools are somewhat different, and firms need to understand the unique benefits, challenges and opportunities of trading in each venue.

Clearing and Settlement Top-of-Mind for Front-Office Execs

6/23/2008
In addition to the excitement in the U.S., the real focus is occurring in Europe, where the EC is trying to get the fragmented clearing and settlement infrastructure players to play nicely in the sandbox.

Risk Management IT Comes to the Forefront in the Wake of Subprime Credit Crisis

6/6/2008
Beleaguered firms will shift IT focus to enterprisewide risk assessment and management, and core deliverables, as well as electronic trading and latency reduction.

In a Tumultuous Economy, Wall Street Must -- and Will -- Find a New Model

5/22/2008
As fixed-income markets falter and write-downs proliferate, investment banks need to discover new opportunities and new ways to manage risk.

The Time Has Come for Fixed-Income Electronic Trading

4/17/2008
In some regards, nothing has changed in the fixed-income trading space to warrant electronic trading. On the other hand, however, everything has changed, signaling that the time may be right for e-trading.

Opportunities Beckon Amid Economic Turmoil

4/14/2008
A shaky economy and the defibrillation of many fixed-income products provide fertile ground for automated trading, fixed-income ECNs and exchanges -- as well as opportunities for those willing to take some calculated risk.

NYSE TransactTools May Be NYSE Euronext’s Most Important Asset

3/14/2008
NYSE TransactTools, a FIX-engine provider, could be the ticket to the NYSE's survival.

Smart Order Routing Gets Enlightened

3/12/2008
The need for increasingly intelligent smart routing is being driven by a more complex execution environment as smart routers of the future will need to be increasingly flexible and multifunctional.

Société Générale-Type Fraud Could Happen Again

2/19/2008
Société Générale rogue trader Jerome Kerviel wasn't a tech genius; but poor risk controls allowed him to cover up his fraudulent trades.

Liquidity Begets Liquidity

2/1/2008
Most think of price when thinking of liquidity. But price can be subjective. How long it takes to execute, how definitive the execution is and the probability that the price will change before execution also are key factors.

Data Center Engineering Needs To Consider Consumption

1/22/2008
The modern data center must be crafted with regard to resource consumption so financial firms can obtain enough power to efficiently manage data, analyze the markets and route orders.

NYSE Specialist Elimination Is Overdue

12/12/2007
The NYSE specialist may soon be eliminated and replaced with designated market makers. But whether these new market intermediaries are effective and profitable is questionable.

Are Brokers Threatening Buy Siders to Increase Flow?

11/26/2007
As buy side brokers decrease the number of brokers they use, sell siders are placing new demands on the buy side. One is send more of your flow to us or risk losing our top tier services.

Be Careful of The Transparent OTC Market

11/26/2007
Be careful what you wish for. A transparent over-the-counter (OTC) market could cause liquidity to dry up.

Larry Tabb Predicts Financial Trends for 2008

10/24/2007
Larry Tabb of TABB Group discusses the trends that, although not new, will gain significance in the coming year.

Subprime Mess Will Continue Impact on Other Markets

9/26/2007
It's just the eye of the storm for the subprime market mess. Count on the crisis impacting many other areas of the market.

The Boston Equity Exchange (BEX) Calls It Quits

9/11/2007
The Boston Equities Exchange (BEX) became the first regional exchange to throw in the towel, but the Boston Stock Exchange (BSX) isn't down for the count, says Special Contributing Editor Larry Tabb.

8/22/2007
Until high-speed, low-latency technology becomes easier to acquire, install and integrate, there are going to be many disappointed vendors.

Multibroker Execution Platforms Slowly Gaining Adoption

7/27/2007
Customers seem to want open execution platforms, but multibroker execution platforms still fail to attain widespread adoption. Fortunately, we are starting to see the multibroker platform pushing forward.

What Does A Thomson-Reuters Combination Mean For The Financial Markets Industry?

7/2/2007
Unless details are settled quickly, the integration could put new and renewal agreements on hold, as clients do not often transition to a platform scheduled for sunset or put their faith in a team that may not be there next month.

Financial Markets Must Invest In Their Technology Infrastructure To Survive

6/13/2007
The financial markets industry is so IT-dedicated these days that organizations cannot function without a strong, scalable and flexible technology infrastructure.

99 Percent Reliability at the Exchanges Is a Thing of the Past

6/5/2007
The financial markets want exchange reliability, but cost pressues, volume and speed expectations make 99 percent reliability almost impossible.

Is Multi-Asset Trading Dead on Arrival?

5/31/2007
Multi-asset trading shouldn't be written off so quickly. More products are electronically traded, and investors are changing the investment dynamic.

Today’s Money Managers Are Leveraging Funds Into Alternative Investment Products

4/26/2007

The LSE-Nasdaq Deal May Be Dead, but Nasdaq Has Other Options

3/23/2007
Finding another large acquisition target may be difficult for Nasdaq as the pickings are slim, but there are some interesting options the exchange could consider other than the LSE.

U.S. Firms Have Had Few Options When it Came to Investing in Companies Overseas, Until Now

3/19/2007
Global is where it's at. The balance of trade, interest rates, economic growth and global expansion all are sending payments from high-wage Western countries to lower-wage emerging markets and Eastern countries.

Nasdaq-LSE: Is the Party Over?

2/27/2007
Does the apparent death of the Nasdaq-LSE deal spell doom for the transatlantic duo? Are Nasdaq and the London Stock Exchange shark bait, or is this one more step in a chess match being staged on a global scale?

Against the Odds, the NYSE Has Successfully Implemented the Hybrid, Acquired Euronext and Become More Profitable

2/21/2007
New technology, combined with cost cutting and a large market share, has allowed the NYSE to become more profitable and successful.

Regulating the Financial Services Industry Is a Balancing Act

1/29/2007
Getting regulation right is like balancing on a knife's edge - tilt too far one way and the industry is hamstrung; tilt too far the other way and reduce the trust that is required for a functioning capital market.

Regaining N.Y.’s Financial Glory?

1/23/2007
The SEC's vote to reduce the impact of Sarbanes-Oxley by reducing audit and sign-off requirements on firms' financial controls is a positive step, but will it bring back growth to the U.S.'s financial markets?

Regaining N.Y.’s Financial Glory?

1/23/2007
While the easing of Sarbanes-Oxley is something to celebrate, it won't bring the traditionally New York-based investment banking business back home tomorrow.